Top US ZIP Codes Offering Highest Certificate of Deposit Yields

Top US ZIP Codes with Leading CD Interest Rates

Certificates of Deposit (CDs) are secure savings instruments provided by banks, credit unions, and financial firms. They offer fixed interest over a set period, requiring deposit locking to earn guaranteed returns. Ideal for retirees and cautious investors, CDs are among the safest savings options, with minimal market risk involved. Different types include Standard, High-yield, Jumbo, No-penalty, IRA, and Step-up CDs. Currently, rates vary by region, with some ZIP codes offering yields exceeding 5%. Prospective savers should compare local rates, especially in high-performing states like Texas, Florida, New York, California, and Ohio, to maximize returns.

Types of CDs

Standard CDs – Fixed interest rates, fixed terms typically starting at three months, minimum deposits, early withdrawal penalties, and deposit insurance.

High-yield CDs – Offered by online banks and credit unions, these feature higher interest due to lower overhead costs.

Jumbo CDs – Require deposits of $50,000 or more, suitable for investors with substantial savings.

No-penalty CDs – Allow early withdrawal without penalty, although typically with lower yields.

IRA CDs – Held within retirement accounts, suitable for long-term retirement savings.

Step-up or Bump-up CDs – Offer increased interest rates during the term; the rate can be increased at specified times or upon request.

Current CD Rates: Fixed rates provide clarity on earnings; the national average APY is around 1.72% for one year and 1.43% for five years. Rates are influenced by the deposit term, the institution, and terms such as early withdrawal penalties.

States with the Highest CD Yields:

Texas: – Typical rates from 4.00% to 5.00% APY, with long-term CDs offering the best returns, especially in ZIP codes like 77494, 77084, 78660, and 77449, with yields exceeding 5% for one-year terms.

Florida: – One-year CDs generally yield between 5.20% and 5.40%. ZIP codes like 32003, 32009, 32024, 32025, and 33469 offer 3.80% to 5.04% APY for 18 months, with deposits starting at $500.

New York: – Some of the highest rates are around 5.35%, with ZIP codes such as 10001, 10012, and 11120 seeing rates up to 4.75% for seven-month promotions, with minimum deposits of $1,000 to $5,000.

California: – CD rates can surpass 5.00%, with ZIP codes from 90001 to 96161 offering up to 5.04% APY for 18 months and 4.66% for three-year terms.

Ohio: – Ranges from 4.00% to 5.00%, depending on the term and deposit amount. ZIP codes like 43002, 43086, and 43015 offer 2.45% to 5.30% APY for six-month CDs, with minimum deposits varying from $0 to $2,500.